My car was in an accident a couple months ago and is now worth $6,000 less than what I owe on it. I don't know how to go about having Gap cover the difference if I am selling it privately rather than trading it in at the dealer.
2007-01-17 05:37:08 · 7 answers · asked by KrisleighH 1 in Cars & Transportation ➔ Insurance & Registration
The concept of GAP insurance is simple. You have totaled your car, and the insurance give you fair market value at the time of loss. But that is under the amount of your loan. Or the car is stolen and not recovered, and you have the same scenario, you owe more than what you got. GAP insurance pays the lender the difference between what you have given him already (fair market value) and the amount of the loan. It is there only to protect the lender.
I can only assume your vehicle wasn't totaled or stolen, so GAP insurance doesn't have a thing to do with it if you want to sell it privately. If you were in an accident, was there an insurance settlement to you for the damage? If so, and you had it fixed, it should be worth what it was at the time of loss.
2007-01-17 05:59:46 · answer #1 · answered by oklatom 7 · 2⤊ 1⤋
Gap insurance covers the difference between what you owe and what an insurance company pays, if the car is a total loss!
Unless the damage from the accident caused the car to be totaled, Gap is not going to apply here. Gap does not cover you if you are upside down when you sell your car. It only applies to a covered loss where the vehicle is totaled, or stolen and not recovered.!
Read the policy for more information.
2007-01-17 13:45:04 · answer #2 · answered by fire4511 7 · 2⤊ 0⤋
GAP coverage only protects you if your vehicle is totaled and you owe more than the actual cash value. It does NOT provide diminution of value protection if you're simply selling the vehicle.
2007-01-17 14:17:12 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 1⤋
When we sold our car, we had the gap insurance on it, we had to contact the dealer and they were to handle sending out a check for the remaining balance to you.
2007-01-17 13:42:00 · answer #4 · answered by Jo 6 · 0⤊ 3⤋
GAP INSURANCE WILL NOT COVER THE VEHICLE UNLESS YOU ARE PAYING IT OFF AS FAR AS THE INSURANCE VALUE IF IT IS A TOTAL LOSS. OTHER THEN THAT, IT WILL OT APPLY.
2007-01-17 13:48:44 · answer #5 · answered by Debbie C 2 · 1⤊ 1⤋
Call them and find out. There may be restrictions on the insurance and you may be forced to go through a dealer. I would say call them and they will tell you what needs to be done.
2007-01-17 13:40:30 · answer #6 · answered by kb6jra 3 · 1⤊ 3⤋
you will need to call the company that provides the gap insurance and have them tell you what their procedure is.
2007-01-17 13:39:59 · answer #7 · answered by luvtheMarines! 2 · 1⤊ 3⤋